What Does a New Furnace Cost? 4 Things You Need to Know

Posted on: February 23, 2015 | by: Will HoushHVAC.comJuly 26, 2017

If you’re in the market for a new furnace, then you’re undoubtedly wondering how much it’s going to cost. Since every homeowner’s needs are different, it makes it impossible to give a “one-size-fits-all” answer. But consider these important things to get a better idea of how much your new furnace may cost:

Furnace Price Is dependent on:

Energy Source

The most important thing to consider when determining your new furnace cost is the energy source. Typically, unit costs for electric furnaces are the least expensive, followed by gas and then oil furnaces.

Check out the chart below for a better idea of furnace prices based on your energy source. It compares the average prices for a standard efficiency and a high efficiency, name brand furnace that would be best suited for use in a 1,500 to 2,000 sq. ft. home

Furnace Efficiency

Furnaces today are much more efficient than the hulking behemothswe remember from our childhood. That means that you have a host of different options when you’re looking to purchase your new unit. Furnaces with higher AFUE ratings run more efficiently, and therefore cost more to purchase upfront, but end up saving you money in the long run on your utility costs.

As you search for your new furnace, keep in mind that a jump from a standard efficiency furnace to a high-efficiency furnace can cost anywhere between $400 and $1,000 more depending on the size and energy source.

Size Makes a Difference

We’ve written before about how the right-sized furnace can save hundreds in energy costs over the years. Well, it can also save money upfront.

Just like most things in this world, bigger means more expensive. Have your contractor perform a Manual J HVAC load test to determine the right-sized furnace for your home so you don’t waste money on a furnace that costs more upfront and increases utility bills over the years.

Depending on the furnace’s energy source, an increase in size can have different effects on a unit’s initial price. For gas furnaces, for example, a 20,000 BTU increase costs around $600 for smaller furnaces and up to $1,500 for larger furnaces, while the same capacity increase for oil furnaces stays in the $500-$600 range no matter what the unit size.

Installation

Installation costs include the time it takes to install the furnace, where it’s being installed, how difficult it is to install, and whether or not new ductwork needs to be installed.

I know, I know. Your ducts are fine, just install the new furnace already! But, odds are, your new furnace will be more efficient than your old system, and that usually means new ductwork is necessary to ensure proper airflow and maximum efficiency. Like everything else when it comes to HVAC installation, it all depends on your home and the furnace you choose.

The chart below gives a total price range for new furnace costs plus the installation, without any issues that may arise. If you want to make sure you budget for possible scenarios, you may want to also include a contingency budget for any unforeseen issues that may arise.

Average New Furnace Cost (Price + Installation)*

Type of Furnace

Standard Efficiency Furnaces

High Efficiency Furnaces

Electric

$1,925

$4,410

Gas

$2,100

$4,625

Oil

$2,885

$6,480

* These prices are an average estimated cost and are not guaranteed. Prices will vary based on city, cost of living, brand, efficiency, warranties included, and more.

Finding the right furnace can be a difficult process, especially when you consider all the different factors that affect how much you’ll pay for your new unit. As you begin your search for the perfect furnace for your home and budget, use the information here to help you make informed decisions. And, if you need help, feel free to contact the team at HVAC.com; we’re always here for you.

What did your new furnace cost? Did your HVAC technician have to install ductwork as well? Share your thoughts in the comments below!